State of Housing in Portland
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2020 State of Housing in Portland
Acknowledgements
Commissioner Dan Ryan’s Office
Kellie Torres
Mark Bond
Yesenia Carrillo
Elizabeth Gadberry
Chariti Li Montez
Portland Housing Advisory Commission
Julia Delgado
Felicia Tripp Folsom
Ernesto Fonseca
Kymberly Horner
Stefanie Kondor
Jessy Ledesma
Diane Linn
Nate McCoy
Sarah Stevenson
Fernando Velez
Taylor Smiley Wolfe
Content, Review & Production Team
Alissa Beddow Leslie Goodlow Antoinette Pietka
Martha Calhoon Michelle Helm Bimal RajBhandary
Shannon Callahan Dana Shephard Steve Richards ( JOHS )
Jennifer Chang Stacy Jeffries Molly Rogers
Jill Chen Mike Johnson David Sheern
Jessica Conner Uma Krishnan Wendy Smith
Thuan Duong Stella Martinez Matthew Tschabold
Andrew Eickmann Aurelia Moran Dory Van BockelForeword from Commissioner Dan Ryan Dear Portlanders– I am pleased to present the 2020 State of Housing report. Since 2015, this report, published annually by the Portland Housing Bureau, has provided local leaders and policy-makers with the most comprehensive resource on housing and affordability in our city, offering us critical insights into who the housing market is serving and who is being left behind. Over the last year, the COVID-19 pandemic has brought unprecedented challenges, exacerbating our housing and houselessness crisis, and deepening race and income disparities. This year’s report examines these impacts on Portland’s housing landscape and looks at how the City is responding. A nimble and urgent pandemic response has called on us as local government to take on new roles. As part of our 2020 relief response, the City of Portland launched new programs to deploy emergency financial assistance, rent and mortgage assistance, and open new shelters. All of these programs led with a racial equity focus to ensure critical assistance was reaching Black, Indigenous, and People of Color (BIPOC) communities, who have been the hardest hit by the pandemic. Yet with eviction and foreclosure moratoriums ending, and rent arrears mounting, we are at a critical juncture. Our resilience and recovery will all depend upon how we handle this crisis long-term. I believe using data to make decisions is how we get results. Now more than ever, we need accurate information about where we are and where we are headed to solve the complex challenges we face. We also need to understand which of our investments are working, and which are not. This report also shows that we have set ambitious goals to meet our toughest challenges. In partnership with Multnomah County and the Joint Office of Homeless Services, we achieved significant progress with more than 1,000 new units of Permanent Supportive Housing (PSH) opened or in development at the end of last year. Portland’s Housing Bond has contributed to this robust response. Twelve projects, totaling more than 1,490 units of permanently affordable housing, have either opened or are in progress across the city since voters overwhelmingly approved the city’s first bond for affordable housing in 2016. We are leveraging community partnerships and aligning with the homeless services system and culturally specific organizations to better serve those disproportionately impacted by the housing shortage, including Communities of Color, immigrant and refugee populations, and families facing houselessness. My thanks to the Portland Housing Bureau for their work producing this exhaustive report and providing a valuable resource to guide us in our work to make Portland a city where we all have the opportunity to live, work, and thrive. Sincerely, Commissioner Dan Ryan
Contents 7 Executive Summary
15 Special Section: COVID-19
C Impacts on Housing
Part 1 Portland Demographics & Housing Stock
24 1.01 Population, Households & Income
33 1.02 Housing Stock & Production
Part 2 Housing Market Affordability
40 2.01 Rental Housing Affordability
56 2.02 Homeownership Affordability
Part 3 City & Neighborhood Profiles
75 Portland
76 122nd-Division
77 Belmont-Hawthorne-Division
78 Centennial-Glenfair-Wilkes
79 Central City
80 Forest Park-Northwest Hills
81 Gateway
82 Hayden Island
83 Hillsdale-Multnomah-Barbur
84 Hollywood
85 Interstate Corridor
86 Lents-Foster
87 MLK-Alberta
88 Montavilla
89 Northwest
90 Parkrose-Argay
91 Pleasant Valley
92 Raleigh Hills
93 Roseway-Cully
94 Sellwood-Moreland-Brooklyn
95 South Portland-Marquam Hill
96 St. Johns
97 Tryon Creek-Riverdale
98 West Portland
99 Woodstock
Part 4 City of Portland Policies & Programs
102 4.01 City Plans & Policies
107 4.02 Focus Areas
108 4.03 Bureau Plans
109 4.04 Renter Portfolio & Programs
115 4.05 Strategic Initiatives
127 4.06 Housing Production & Pipeline
Part 5 City of Portland Program Funding
Part 6 Definitions, Methodology & SourcesNeighborhood Analysis Areas
ST. JOHNS
HAYDEN ISLAND-
BRIDGETON
INTERSTATE
CORRIDOR
FOREST PARK- MLK-
NORTHWEST HILLS ALBERTA
ROSEWAY- PARKROSE-
CULLY ARGAY
HOLLY WOOD
NORTHWEST
GATEWAY
CENTRAL CIT Y MONTAVILLA
BELMONT-
HAWTHORNE- CENTENNIAL-
DIVISION GLENFAIR-
WILKES
RALEIGH SOUTH PORTLAND-
HILLS MARQUAM HILL 122ND-
DIVISION
WOODSTOCK
SELLWOOD -
MORELAND -
HILLSDALE- BROOKLYN LENTS -FOSTER
MULTNOMAH- PLEASANT
BARBUR VALLEY
WEST
PORTLAND TRYON CREEK-
RIVERDALEIntroduction
Executive Summary
The State of Housing in Portland report is published annually to provide stakeholders and policy
makers with a comprehensive look at Portland’s housing market by neighborhood, housing
type, and affordability using the latest available data. While primarily focused on the housing
market and the people impacted by it, this report also examines City of Portland policies and
programs that address housing affordability, tenant protections, and homelessness. Given
the nature of the changes over the last year due to COVID-19, this year’s report is split into
two periods: one focusing on demographic and housing trends during the five-year period
from 2013 to 2018 (Pre-COVID), and the changes seen in 2020 during the pandemic.
The 2020 State of Housing in Portland Report shows housing The gap between household income and housing costs
affordability remains a challenge for Portlanders, as rents continues to burden many households and demands continued
and home sales prices have continued to climb—outpacing efforts by the City to address housing affordability. In 2019,
incomes. the City of Portland produced 878 new affordable units—the
highest ever recorded for one year. These units are housing an
Portland ranks as the 26th most populous city in the United
estimated 1,500 people. The COVID-19 pandemic has since
States and the sixth largest city on the West Coast. From
slowed production of affordable units. Nevertheless, another
2013-2018, Portland added nearly 44,700 new residents,
654 newly affordable units opened in 2020 with capacity to
at an annual rate of 1.5 percent. This is higher than early
house an estimated 1,200 people.
2000 when the population grew by 1.2 percent annually. The
Interstate Corridor and the Central City have remained the Local revenue sources like Portland’s Housing Bond and
major centers of population growth in the city. urban renewal funds have been critical for building new
affordable housing. Impending changes to revenue sources
Because of the impacts of population growth on housing
like the expiration of several Urban Renewal Areas (URAs),
demand, residential permitting and production data show
however, will likely impact production of affordable housing.
sustained activity. In 2019, 2,889 new units were added to the
The Housing Bureau will continue to track and report on the
city’s housing stock and 5,294 permits were approved. While
production and preservation of affordable housing units under
this represents a significant drop compared to 2017, it should
changing state and local legislation.
be noted that 2017 production levels were unusually high as
the market was reacting to legislative changes, particularly the
implementation of Inclusionary Housing requirements. The Demographic Drivers
2018 and 2019 data are more in line with the sustained rate
of housing production that will be needed to meet expected Population & Households
growth by 2035, as laid out in Portland’s Comprehensive Portland continues to add more residents than other cities in
Plan. Oregon. Portland’s population grew by 44,700 individuals
As the city continues to grow, Portland’s population is (7.5 percent) and more than 14,295 households (5.7 percent)
becoming wealthier and more educated overall. 31.5 percent between 2013 and 2018, according to the latest available
of households were making more than $100,000 per year American Community Survey (ACS) estimates from the U.S.
in 2018 and nearly half of people over 18 had a bachelor’s Census Bureau. In contrast to the 1.5 percent annual growth
degrees or higher. Not all Portlanders have experienced the rate for the overall population, the number of households grew
benefits of a robust economy, however. Disparities in income at a lower rate of 1.1 percent. Households without children
and educational attainment persist between white households have accounted for most of the growth. Portland’s current
and People of Color, as well as renters and homeowners. population is over 639,387.
portl and housing bure au State of Housing in Portland | December 2020 7Introduction
The Central City, North/Northeast, and East Portland Housing Stock & Production
neighborhoods continued to show the largest population In 2017, annual production and permitting levels peaked
increases, accounting for more than 50 percent of the city’s higher than at any point in the last 16 years. Multifamily
population growth. In terms of household growth, the Central permitting set a historic high at over 6,000 permits, and
City, Interstate Corridor, Northwest, and South Portland- production peaked at 8,000 units. Although both permitting
Marquam Hill gained the most households, the majority of and production declined in 2018, permitting continued to
which were households without children. Together, these exceed production levels, indicating there would be continued
four neighborhoods gained more than 6,900 households. growth in the number of housing units added in 2019.
The Parkrose-Argay neighborhood seems to be losing However, multifamily production decreased further in 2019
population, whereas Hayden Island saw decrease in number to 2,343 units—a number consistent with production levels
of households. seen prior to the 2017 spike and prior to the recession. Similar
declines were also seen in surrounding cities in Washington
Income County and Clackamas County, indicating that the decrease
Incomes began to rise overall in 2018, fueled by . continued is likely due in part to increasing construction and labor
job growth and increases in minimum wage. The share of costs, and tariff uncertainties. Single-family permitting and
households making more than $100,000 grew from 21.5 production have remained consistent in recent years, but have
percent in 2013 to 31.5 percent. However, these gains have not yet reached pre-recessionary levels. In 2019 there were
not been felt by everyone. A closer look reveals a different 693 single-family permits approved and 546 units produced.
picture for many Portlanders depending upon race and Most of the new multifamily production continues to be
household type. The income gains by Portlanders in the top concentrated in the Hollywood, Interstate Corridor, and
20 percent were remarkably higher than those in middle- and Northwest neighborhoods, while single-family production
lower- income groups. Most People of Color showed smaller has been focused in the Interstate Corridor and Lents-Foster
increases compared to white households. neighborhoods. In 2019, there was dramatic decrease in the
While median income levels for renters and homeowners units produced in the Central City. In 2019, single-family
have grown since 2013, the median income for Portland units are mostly focused in the Interstate Corridor and
homeowners of $92,205 per year is more than double that Lent-Foster neighborhoods.
of renters, whose median income is almost $42,659 per year. In total, the city’s housing stock consists of 294,853 units with
Portland homeowners have surpassed income levels from 154,968 in single-family and 139,885 multifamily homes.
before the 2007 recession.
Rentership
Rentership increased from 46.6 percent in 2013 to 46.9
percent in 2018, indicating that Portland is heading toward
an equal split between renter and homeowner households.
African American, Hawaiian-Pacific Islander, Hispanic-
Latinx and Native Americans comprise the majority of
renter households. Rentership rates have increased among
African American households, while staying the same for
white, Asian, and Hawaiian-Pacific Islanders, and decreasing
among Hispanic- Latinx, and Native American households.
In 2018, eleven out of 24 neighborhoods showed increases in
rentership with Hollywood, Hayden Island, and the Central
City leading with increases above 3 percent.
8 State of Housing in Portland | December 2020 portl and housing bure auIntroduction
Homeownership Rate Communities of Color—American Indian-Alaska Native,
The homeownership rate has decreased overall in the last Native Hawaiian-Pacific Islander, and African American
few years, from 53.4 percent in 2013 to 53.1 percent in 2018. communities—are overrepresented in the population experi-
All communities, except for Hispanic-Latinx and Native encing homelessness in comparison to their representation in
American communities, saw a decrease in homeownership the general population.
rates from 2013 to 2018.
Pleasant Valley, Sellwood-Moreland-Brooklyn, Hillsdale- Affordability
Multnomah-Barbur, West Portland, and St. Johns all showed
increases in homeownership above 3 percent. Rental Affordability
The softening of rent increases seen in 2017 and 2018 began to
Racial Diversity slow in 2019. In 2019, the average rental unit charged $1,491
The City of Portland continues to diversify racially. All neigh- per month, which is $61 higher than the previous year. All
borhoods have grown more than 10 percent in non-white unit types have increased in rents however the increases seem
populations, with seven neighborhoods at more than 25 to be greater among the larger units. Two- and 3-bedroom
percent. units on average increased by 4.7 and 4.5 percent, respec-
tively. The vacancy rates on average decreased from 7.1
Citywide, racial diversity as measured by the percent change
percent in 2018 to 6.4 percent in 2019.The second quarter of
in the share of Communities of Color, increased in nearly every
2020 shows rents decreasing from the previous year by 1.6
neighborhood between 2013 and 2018 with the exception
of Interstate Corridor, St. Johns, MLK-Alberta, Interstate percent. In 2020, the average rental unit charged $1,461 per
Corridor, Roseway-Cully, Northwest, and Montavilla, where month, which is $14 lower than the previous year. Changes in
the proportional share of the Communities of Color showed average rent varied by unit type, with increases mostly seen
slight decrease during this period. among larger units. Rents for 2- and 3-bedroom units have
increased on average by 1.0 and 4.5 percent respectively. On
Homelessness average, vacancy rates increased from 6.4 percent in 2019
to 11.1 percent in 2020, and were higher among studios and
In 2019, 4,015 people were counted as experiencing
1-bedroom units.
homelessness on a single night in winter. This Point-In-Time
Count of Homelessness (PIT Count) is conducted every two The following neighborhoods across the city saw decreases in
years and is based on a federal definition of homelessness average rents: Belmont-Hawthorne-Division, Central City,
(“HUD homeless”) that includes people staying in emergency Forest Park, Northwest, South Portland and Woodstock. Four
shelter, transitional housing, or living on the street. The neighborhoods had rent increases above 5 percent: Hayden
overall number from 2019 is comparable to the number of Island, Parkrose, Raleigh Hills and West Portland. On
people counted in both 2015 and 2017. However, the 2019 average, rent for 3-bedroom units increased the most (more
data showed a new trend in the distribution of people experi- than 5 percent) in Belmont, Parkrose, Pleasant Valley, Raleigh
encing homelessness. There was a decline in the percentage Hills and St. Johns. Woodstock was the only neighborhood
of people living in transitional housing and also a decline to see a significant decline in this category (by 10 percent).
from 2017 to 2019 in the share of people staying in shelter.
Conversely, there was an increase in the share of people
who were unsheltered for the same time period. From 2015
to 2019, the percentage of people experiencing chronic
homelessness increased. Correspondingly, the percentage
of unsheltered people who were chronically homeless also
increased. People experiencing chronic homelessness reported
having a range of disabling conditions, including mental
health issues, substance abuse disorders, physical disabilities
and chronic health conditions. The PIT count shows three
portl and housing bure au State of Housing in Portland | December 2020 9Introduction
Fig. 0.01 Percent Change in Rent per Year, 2011-2020 (Quarterly Data)
Average Even Years Odd Years
6%
4%
2%
0%
-2%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fig. 0.02 Vacancy Rates, 2011-2020 (Quarterly Data)
Portland Central City East Portland
20%
15%
10%
5%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fig. 0.03 Asking Rents, 2011-2020 (Quarterly Data)
Portland Central City East Portland
$2,000
$1,500
$1,000
$500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fig. 0.04 Rent Concession Rates, 2011-2020 (Quarterly Data)
Portland Central City East Portland
6%
5%
4%
3%
2%
1%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: CoStar 2021
10 State of Housing in Portland | December 2020 portl and housing bure auIntroduction
Homeownership Affordability
The median home sales price exceeded $400,000 in nearly
two-thirds of neighborhoods in the city in 2019, compared
to less than half of neighborhoods in 2016 (when measured
in 2019 dollars). A homebuyer looking to buy a home for less
than $300,000 in 2019 would have only one neighborhood to
buy in: Hayden Island-Bridgeton (whereas the buyer would
have found two neighborhoods in East Portland in 2018).
Between 2014 and 2019, the median home sales price citywide
increased 26 percent—over $88,638. As in 2018, the neigh-
borhoods in East Portland and Inner East: 122nd-Dvision,
Centennial-Glenfair-Wilkes, Gateway, and Lents-Foster
showed the most significant increases in median home sales
price (between 43 and 57 percent). Hayden Island, Parkrose-
Argay, Pleasant Valley, and St. Johns neighborhoods also
showed significant increases.
Increases in home prices in the last five years in many
East Portland neighborhoods raises serious concerns about
Shapedisplacement and housing stability. Most of the Fig. 0.05 Increase in Home Prices (2019$)
home prices increased by more than 32 percent in the last
five years. Three neighborhoods with already high home
$435,528
prices—Central City, Forest Park-Northwest Hills, and $422,229 $424,900
$404,510
Northwest—showed slower increases, having increased by
$367,283
3, 7, and 6 percent, respectively.
$336,262
$315,327
$295,585 $279,314
$267,654
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: RMLS 2021
portl and housing bure au State of Housing in Portland | December 2020 11Introduction
City of Portland: Since Housing Emergency Declaration in 2015
On October 7, 2015, Portland City Council declared a
housing emergency to help address the city’s growing homeless
and affordable housing crisis. The declaration by Council
allowed for the expedited development of affordable housing
projects and made it easier to provide service locations to
people experiencing homelessness. This has allowed the
Portland Housing Bureau to pursue several strategic initia-
tives; the foremost being Portland’s Housing Bond, which is a
$258.4 million voter-backed initiative to create more perma-
nently affordable housing in Portland. Other strategies are
the North/Northeast Neighborhood Housing Strategy for
addressing displacement, Inclusionary Housing to develop
affordable units through the private market, development of
the Supportive Housing plan to create 2,000 new supportive
housing units by 2028, opening of the Rental Services office,
and the creation of the Joint office of Homeless Services,
which is a City-County venture to solve homelessness in
Multnomah County.
State and local legislative changes, such as limitations on City Regulated Units by Location Since 2015
rent increases and zoning changes, have expanded renter
protections and opportunities for small-scale housing devel-
opment. Also, Metro recently allocated $211 million for Recently Opened
the development of affordable housing within the City of Construction / Pre-Development
Portland, which will add to the City’s ongoing efforts. These
initiatives along with new policies, programs, and revenue
sources will support the creation of thousands of new units of
affordable housing and tenant protections for Portlanders in
coming years. The Housing Bureau will track and report on
the production and preservation of affordable housing units
developed by direct financing to nonprofit providers as well
as property tax and development fee exemptions to for-profit
developers under the above-mentioned Council approved
initiatives.
5,843 7,309 11,038
Affordable Affordable Est. People
Units Bedrooms Housed
12 State of Housing in Portland | December 2020 portl and housing bure auIntroduction
COVID-19 Impacts on Housing & Beyond
Since March 12, 2020 when the City of Portland declared the likely to be exposed to the virus, and impacted by underem-
COVID-19 emergency, the city has seen major economic and ployment, and unemployment.
social disruptions. The COVID-19 pandemic has changed—
The pandemic affected all aspects of housing in Portland,
and will continue to change—the future of work, transit, and
particularly the rental market (especially multifamily) as
social equity. More importantly, it has deepened income,
seen in the rising vacancy rates, decreasing asking rents,
housing, and health disparities, all of which in turn affect
and concession rates, etc. These changes varied geograph-
the City’s response to the pandemic. This section provides
ically—Central City was more affected than East Portland.
a snapshot of the impacts of the COVID-19 pandemic
Neighboring cities such Beaverton, Hillsboro, and Vancouver
on the state of housing in Portland, comparing data from
showed similar rates as East Portland than City of Portland
December 2019 and 2020 (shown as observations and not
as a whole.
causal statements). More research is needed to understand the
relative severity of the issues raised by the pandemic. Housing stability remains a concern for renters and
homeowners experiencing unemployment or income loss due
The lockdown and closing of many businesses and institu-
to the pandemic—with a disproportionate impact on BIPOC
tions have affected all Portlanders but low-income Portlanders
communities. While renters are protected from eviction for
and the BIPOC community have been most severely impacted
non-payment of rent through mid-2021, non-payment and
as they tend to comprise much of the workforce in retail,
rent deferrals are between 12-15 percent per month, adding
hospitality, and other service sectors. As such, they were more
to rent arrears and impacting renters, landlords, and property
owners alike. The long-term impacts on rental housing will
depend on many factors such as a return to office space,
Fig. 0.06 Vacancy Rate in Portland
business re-opening, economic resilience, and government
policy.
16.8% Central City
Portland The homeownership market remained stable throughout
East Portland the year, and the median home price remained higher in
11.2% 10.5% 2020 compared to 2019. Factors such as low inventory, low
8.3% mortgage rates, and possibly demands for the privacy and
office space contributed to a strong residential home market.
4.6% 4.1%
DEC DEC
2019 2020
Fig. 0.07 Asking Rent in Portland Fig. 0.08 Residential Median Sale Price by Month (Dec 1, 2019–Dec 31, 2020)
Central City 2019
City Emergency Declared
Portland 2020
$1,682
East Portland
$1,594
$475,000
$1,472
$1,433
$450,000
$1,178 $425,000
$1,154
$400,000
DEC DEC
2019 2020
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
portl and housing bure au State of Housing in Portland | December 2020 13Introduction
Housing Policy & Initiatives
During the pandemic and resulting economic disruption, State
multiple levels of government have stepped in with a myriad of Oregon, as well as many other states, implemented statewide
relief policies aimed at stabilizing the economy and housing— eviction and foreclosure moratoria. Three separate special
payroll protection, economic disaster loans, unemployment legislative sessions were convened throughout 2020 to
assistance, emergency and rental assistance, eviction and authorize additional emergency assistance spending. A
foreclosure prevention, and more. statewide Landlord Compensation Fund was established to
help struggling landlords with rent arrears. The $35 million
Federal fund prioritizes total arrears and smaller portfolios.
In March 2020, the federal government took unprecedented
steps to fight COVID-19 and the resulting economic turmoil. Local (City)
The Coronavirus Aid, Relief, and Economy Security (CARES Local governments are filling new roles. As a part of
Act) provided economic stimulus payments, an expansion PDX-CARES Relief Program, the City of Portland has rolled
of unemployment insurance benefits, and an eviction and out $114 million, which includes $22.4 million in household
forbearance moratorium. This initiative provided liquidity assistance, $16.7 million for housing stability, and $20.6
to the financial market and has largely kept people housed million in homeless response. Most of these programs led
and the housing financial market functioning. However, with racial equity and targeted BIPOC communities.
CARES Act funding was not enough to meet the needs of the
community for the duration of the pandemic. In December, The Portland Housing Bureau has facilitated the distribution
nine months later, an additional federal stimulus package of $38 million in rental and emergency cash assistance to
came as a relief bill. The package includes additional rental provide relief to vulnerable households affected by the
assistance (the Emergency Rent Assistance Program, with pandemic. The City’s three main programs are in the areas
Portland estimated to receive $19 million), and the eviction of Renter Stabilization ($19.5 million), Emergency Household
moratorium was extended. Assistance ($16.9 million), and Homeowner Stabilization ($1.6
million). All of the programs have been provided through a
network of community-based organizations. The City will
continue providing housing assistance in 2021 with additional
funding from the American Rescue Plan.
Rent Assistance:
Households Served
by Zip Code
City CARES Funding
Household Assistance Rent Assistance
Program
51-75
provided through 34,053 3,200 74% 150+ 51-75
26-50 126-150 26-50
BIPOC
expanded partner Indviduals Households 1-25 101-125 1-25
Households
network Served Served
Served 76-100
Preliminary Data January PHB 2021
14 State of Housing in Portland | December 2020 portl and housing bure auSpecial Section: Impacts of COVID-19 on Housing
Impacts of the COVID-19 Pandemic
on Housing in Portland
Since March 12, 2020 when the City of Portland declared the COVID-19 emergency, the city has seen
major economic and social disruptions. The COVID-19 pandemic has changed—and will continue
to change—the future of work, transit, and social equity. More importantly, it has deepened income,
housing, and health disparities, all of which affect the City’s response to the pandemic. This section
provides a snapshot of the impacts of the COVID-19 pandemic on the state of housing in Portland,
comparing data from December 2019 and 2020 (shown as observations and not causal statements).
More research is needed to understand the relative severity of the issues raised by the pandemic.
Disproportionate Impact on BIPOC Communities
Since the first incidence of COVID-19 in Oregon in February
2020, nearly 24,705 cases with 10 percent hospitalization and
389 deaths have been reported (as of December 2020). Although
most Oregonians have been affected by the pandemic in some BIPOC
way, data shows that BIPOC (Black, Indigenous, and People of communities
Color) communities have been disproportionately impacted. represent 40 percent
BIPOC communities represent 40 percent of COVID-19 cases,
of COVID-19 cases,
but comprise only 30 percent of the total population. The figure but comprise only
below shows disparities between infection rates and proportion 30 percent of the
of population in Multnomah County by race and ethnicity. total population.
Percentage of COVID-19 Cases
Compared to Proportion of Population Percent of COVID-19 Cases
Percent of Population
70%
60%
50%
40%
30%
20%
10%
AMERICAN INDIAN - ASIAN BLACK HISPANIC - HAWAIIAN - WHITE OTHER RACE - UNKNOWN
ALASKA NATIVE LATINX PACIFIC ISLANDER MULTIRACIAL
Source: Multnomah County Regional COVID-19 Data Dashboard, November 2020
portl and housing bure au State of Housing in Portland | December 2020 15Special Section: Impacts of COVID-19 on Housing
Economy
While all aspects of the economy were affected by the
pandemic and subsequent lock down, retail and other
Percentage Working in Service Occupations
service industries such as hospitality and tourism were
most affected. Forced lockdown led to loss of income with a
70%
dramatic increase in unemployment or under employment
for all Portlanders, but BIPOC communities were more 60%
deeply affected as they represent a greater proportion of 50%
workers in the lower- paying frontline and service-re- 40%
lated industries. As such, many low-income renters and 30%
homeowners in the city have struggled to make mortgage 20%
and rent payments.
10%
Housing ASIAN BLACK INDIGENOUS LATINX WHITE OTHER
RACE
MULTIRACIAL
A major concern during the COVID-19 crisis has been the
impact on housing markets, both rental and homeowner
(although at different levels). Housing stability remains Percentage Earning Below $60,000
a concern for renters and homeowners who continue
to experience unemployment or income loss due to the
pandemic—again, with a disproportionate impact on 70%
BIPOC communities. The long-term impacts on housing 60%
are unpredictable, and depend on many factors, such as 50%
a return to office space, business re-opening, economic 40%
resilience, and government policy. So far, renters and
30%
homeowners are protected from evictions and foreclosures
20%
through mid-2021.
10%
ASIAN BLACK INDIGENOUS LATINX WHITE OTHER MULTIRACIAL
RACE
Percentage Renting
70%
60%
50%
40%
30%
20%
10%
ASIAN BLACK INDIGENOUS LATINX WHITE OTHER MULTIRACIAL
RACE
16 State of Housing in Portland | December 2020 portl and housing bure auSpecial Section: Impacts of COVID-19 on Housing
Rental Market Central City
Portland
East Portland
Prior to the pandemic, Portland’s rental market was stabilizing with
increased production of units due to City policies and developer
efforts. In 2020, the rental market showed following trends: Vacancy Rate in Portland
Vacancy & Leasing 16.8%
CoStar data from multifamily properties show a continued trend of
declining rents and increasing vacancies. Overall vacancies increased
by 2.2 percent, from 8.3 percent in December 2019 to 10.5 percent in 11.2% 10.5%
December 2020, over the same time the previous year. Vacancies for 8.3%
high-quality 4- and 5-Star properties have increased over 6 percent
over the same period, and CoStar estimates that 16.8 percent of 4.6% 4.1%
apartments are vacant in Portland’s Central City. Vacancy rates have
held steady or decreased in the suburbs, as seen by the decrease in East
DEC DEC
Portland where the vacancy rate was 4.1 percent in December 2020. 2019 2020
Asking Rent
Before the pandemic, the average asking rent had been stabilizing in Asking Rent in Portland
Portland. The cost of renting an apartment began decreasing in the last
three quarters of 2020 with asking rents 5 percent lower overall than the $1,682
same point the previous year (December 2019). This was a reverse of the $1,594
steep increases that contributed to the city’s housing crisis earlier in the $1,472
$1,433
decade. The decrease varied geographically, with the Central City seeing
the largest since the start of the pandemic while in East Portland, rent
has been stable and actually increased somewhat in December 2020. $1,154 $1,178
As with other comparable cities on the West Coast, Portland
DEC DEC
is one of the largest cities to see a decrease in asking rent. 2019 2020
However, Portland seems to have weathered the pandemic
somewhat better than other West Coast cities.
Concession Rates in Portland
3.4%
2.3%
2.1% 2.1%
0.6% 0.7%
DEC DEC
Source: CoStar 2021 2019 2020
portl and housing bure au State of Housing in Portland | December 2020 17Special Section: Impacts of COVID-19 on Housing
Non-Payment or Deferral
Nationally, end-of-month payment data show that renters have been
making payments at a rate higher than 94 percent during each month
2020. Even with loss of employment, many renters have prioritized Portland
paying rent. The CARES Act and flexible payment plans have helped Vancouver
Hillsboro
households continue to pay. However, there is concern among property
Beaverton
managers about decreasing payments, with eviction moratoriums
set to expire in mid-2021. Both property owners and renters are
relying on the possibility of continued relief packages from the federal
Vacancy Rates in
government. Portland has been comparable to national trends, with
the Portland-Metro Area
non-payment rates holding at 12 to 15 percent since May of 2020. 10.5%
PHB estimates rent arrears per month to be $20 to $25 million.
8.3%
People Moving to the Suburbs
Working from home during COVID-19 created a national trend of
urban cores losing renters to lower-cost suburbs that offer more housing 6.2%
5.8%
5.6%
for the money. Suburbs are seeing rising demand while the Central 5.2%
4.7%
City continues to struggle to fill units. We cannot answer the question 4.3%
of whether Portland’s Central City is losing renters to the suburbs
DEC 2019 DEC 2020
and neighboring cities, however, recent CoStar data shows that there
is an increasing preference for neighboring suburbs. The vacancy
rate changes from December 2019 to December 2020 in Portland
was much higher than in neighboring cities—such as Beaverton,
Asking Rent in
Hillsboro, and Vancouver—which saw their vacancy rates decrease or the Portland-Metro Area
remain steady during the same period. Rents in Beaverton, Hillsboro,
and Vancouver held steady during the fourth quarter of 2020.
$1,500
$1,477
$1,472
$1,433
$1,403
$1,355
$1,342
$1,316
DEC 2019 DEC 2020
Source: CoStar 2021
18 State of Housing in Portland | December 2020 portl and housing bure auSpecial Section: Impacts of COVID-19 on Housing
Homeownership Market
Foreclosure Prevention &
With historic low mortgage rates, home sales in Portland Forbearance Programs
showed a robust launch in the first two months of 2020. On
At the beginning of the pandemic,
March 12, the City declared the COVID-19 emergency, and
the government initiated 12-month
April to June sales indicate an initial slowdown. However, in
forbearance plans, offered by
July, despite the economic downturn, the number of home
government-enterprise-backed
sales started rising and stayed strong through December.
mortgages. Initially, there was an
In December 2020, 909 units were sold at a median sale price uptick in homeowners with FHA,
of $460,000—much higher than in December 2019 with 800 Fannie Mae and Freddie Mac in
units sold at a median sale price of $420,000. The median sale forbearance plans. Nationally these
price has been consistently higher in 2020 compared to the same started dwindling in the latter
period in 2019, except for a slight dip in May. Despite early dismal part of 2020, and this trend is
forecasts, the condominium market also remained stable in 2020. assumed to be similar in Portland.
The number of sales remained strong, except for a noticeable
dip during the early months of the pandemic (March to May).
Due to the low inventory Residential Unit Sales by Month (Dec 1, 2019–Dec 31, 2020)
of available homes for sale
in Portland, the impact 2019
City Emergency Declared
of COVID-19 on median 2020
home sale price will not be 1,000
obvious for quite a while.
800
600
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Residential Median Sale Price by Month (Dec 1, 2019–Dec 31, 2020)
City Emergency Declared 2019
2020
$475,000
$450,000
$425,000
$400,000
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
portl and housing bure au State of Housing in Portland | December 2020 19Special Section: Impacts of COVID-19 on Housing
Housing Policy & Initiatives
Multiple levels of government have stepped in with a myriad of relief policies aimed at stabilizing
the economy and housing—payroll protection, economic disaster loans, unemployment assistance,
emergency and rental assistance, eviction and foreclosure prevention, and more.
Federal
In March 2020, the federal government took unprecedented steps to fight COVID-19 and the resulting
economic turmoil. The Coronavirus Aid, Relief, and Economy Security (CARES Act) provided economic
stimulus payments, an expansion of unemployment insurance benefits, and eviction and forbearance
moratoriums. This provided liquidity to the financial market, and has largely kept people housed and the
housing financial market functioning. However, CARES Act funding was not enough to meet the country’s
needs for the duration of the pandemic. In December, nine months later, an additional federal stimulus package
came as a relief bill. The package included additional rental assistance—the Emergency Rent Assistance
Program, with Portland estimated to receive $19 million—and the eviction moratorium was extended.
State
Oregon, as well as many other states, implemented statewide eviction and foreclosure moratoria. Three
separate special legislative sessions were convened in 2020 to authorize additional emergency assistance
spending. A statewide Landlord Compensation Fund was established to help struggling landlords with
rent arrears. The $35 million fund prioritizes total rent arrears and landlords with smaller portfolios.
Local (City)
Local governments are filling new roles. As a part of the PDX-CARES Relief Program, the City of Portland has
rolled out $114 million, which includes $22.4 million in household assistance, $16.7 million in housing stability, and
$20.6 million in homeless response. Most of these programs led with racial equity and targeted BIPOC communities.
The Portland Housing Bureau has facilitated the distribution of $38 million in rental and emergency
cash assistance to provide housing relief to vulnerable Portland households affected by the pandemic.
The City’s three main programs are in the areas of Renter Stabilization ($19.5 million), Emergency
Household Assistance ($16.9 million), and Homeowner Stabilization ($1.6 million). All of the programs
have been provided through a network of community-based organizations. The City will continue
providing housing assistance in 2021 with additional funding from the American Rescue Plan.
Rent Assistance:
City CARES Funding Households Served
by Zip Code
Household Assistance Rent Assistance
Program 150+
126-150
provided through 34,053 3,200 74% 101-125
BIPOC 76-100
expanded partner Indviduals Households
Households
network Served Served 51-75
Served
26-50
1-25
Preliminary Data January PHB 2021
20 State of Housing in Portland | December 2020 portl and housing bure auSpecial Section: Impacts of COVID-19 on Housing
Beyond 2020: The Long Shadow of the Pandemic
The pandemic continues. Unemployment claims remain
high, businesses are not fully open, and the economic
future is uncertain. There is uncertainty as to what will
happen when local, state, and national moratoriums on
evictions and foreclosures end in mid-2021. The short-term
provision of rental and legal assistance by various levels
of government have helped, but they are not a permanent
solution. The availability of vaccination brings optimism.
Economic hardships wrought by the COVID-19 pandemic
will be long-term and many renters and homeowners in
Portland alike could still take a serious hit in coming
months. It will all depend upon how the governments at
state and local levels handle this crisis long-term.
Recent changes in political leadership at the federal level
will affect the course of economic recovery. Time will
tell what the impact of a $1.9 trillion stimulus plan—
which includes $37 billion dollars earmarked for renters,
homeowners, and those experiencing homelessness—looks
like. The extent and impact of these new initiatives will be
the subject of the next report.
portl and housing bure au State of Housing in Portland | December 2020 21You can also read
